/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, Oct. 8 /CNW/ - Suroco Energy Inc. (TSX Venture Exchange: SRN)
(the "Corporation") is pleased to announce that it has entered into a
definitive agreement (the "Agreement") for the arm's length acquisition (the
"Proposed Transaction") of interests in the Suroriente Block, Arjona Field,
Alea 1947 C Block and Alea 1848 A Block in Colombia (the "Acquired Interests")
currently held by Alentar Holdings Inc. ("Alentar"), in exchange for 8,700,000
common shares in the capital of the Corporation at a deemed price of US$1.00
per share and 4,000,000 Contingent Value Rights.
The Board of Directors and management of the Corporation feel strongly
that the Proposed Transaction, which will increase the Corporation's
participating interest in four of its core properties, is a very beneficial
opportunity. In the Suroriente Block, the increased participating interest
will add oil production of approximately 120 barrels per day to the
Corporation. The two recently awarded Alea Blocks are at an early exploration
stage where seismic is expected to be acquired in early 2009.
The Agreement is dated effective October 7, 2008.
Upon completion of the Proposed Transaction, one nominee of Alentar, Mr.
Juan Szabs, will be added to board of directors of the Corporation.
Please refer to the Corporation's July 21, 2008 press release for a
summary of the terms of the Contingent Value Rights, for greater detail as to
the Corporation's participating interests in the Acquired Interests upon
closing of the Proposed Transaction and for a summary of Mr. Szabs's resume.
The Corporation is working diligently to close the Proposed Transaction,
which is subject to a number of conditions including, but not limited to
execution of any other documentation reasonably required to close the Proposed
Transaction, the completion of the Proposed Transaction within 160 days from
the date of the Definitive Agreement and of all necessary consents, approvals,
exemptions and authorizations of governmental bodies and other interested
third parties, including, but not limited to, approval of the Proposed
Transaction by the TSX Venture Exchange.
The Corporation will have further announcements upon receipt of
conditional approval of the Proposed Transaction by the TSX Venture Exchange
There are currently 38,986,312 common shares of the Corporation
outstanding. Upon closing of the Proposed Transaction, the Corporation will
have 47,686,312 common shares outstanding.
The Corporation is a Calgary-based junior oil and gas company, which
explores for, develops, produces and sells crude oil, natural gas liquids and
natural gas in Central and South America, Western Canada and the United States
of America. The Corporation's common shares trade on the TSX Venture Exchange
under the symbol SRN.
Forward Looking Statements
Certain information contained herein may constitute forward looking
statements within the meaning of applicable securities laws. Forward looking
statements may include estimates, plans, expectations, opinions, forecasts,
projections, guidance or other statements that are not statements of facts.
Although the Corporation believes that the expectations reflected in such
forward looking statements are reasonable, it can give no assurance that such
expectations will be realized. These statements are subject to certain risks
and uncertainties and may be based on assumptions that could cause actual
results to differ materially from those anticipated or implied in the forward
looking statements. The Corporation's forward looking statements are expressly
qualified in their entirety by this cautionary statement.
The TSX Venture Exchange has in no way passed on the merits of the
Proposed Transaction and has neither approved nor disapproved the contents of
the press release. There can be no assurance that the Proposed Transaction
will be completed as proposed or at all. Trading in the securities of the
Corporation should be considered highly speculative.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
For further information:
For further information: Travis Doupe, VP Finance and Chief Financial
Officer of the Corporation, Telephone: (403) 232-6784, Facsimile: (403)